Abstract

This study intended to establish the effect of regulatory framework on sustainability of SMEs in central Uganda. We employed a survey design with a sample of 259 respondents who were involved in the day to day running of the affairs of SMEs considered in this study. Mixed methods were employed and referential statistics were used in data analysis. Results informed that regulatory framework has a significant effect on sustainability of SMEs. Findings further revealed a moderate relationship between regulatory framework and sustainability of SMEs. We concluded that sustainability of SMEs is partly associated with regulatory framework put in place. A good regulatory framework helps businesses to survive and thrive and vice versa. Therefore, it is prudent for government to formulate a regulatory framework that is able to support sustainability of businesses. There should be involvement of key stakeholders from the business sector during formulation of laws and policies related to regulating SMEs.